Months after the Enforcement Directorate (ED) attached the Swiss bank accounts of City Limouzine group chairman Sayed Masood for allegedly duping investors through his companies, the adjudicating authority under the PMLA has upheld the ED's action.
"The order passed today by the adjudicating authority under the Prevention of Money Laundering Act (PMLA) has upheld the ED's attachment and cleared the decks for the ED to approach the Swiss government for possession and taking over of these bank accounts," sources in the ED said.
The ED is investigating the City Group and its Chairman Masood, who allegedly indulged in money laundering by floating ponzi schemes offering astronomically high returns and cheated thousands of investors across the country.
In October 2012, the directorate had issued 16 orders to attach movable and immovable properties in India with a market value of over Rs 200 crore in the names of City Group of companies, Masood, his associates as well as family members.
Investigations by ED revealed that Masood maintained bank accounts in Switzerland in his name and in the name of his companies. The directorate had attached these bank accounts with a balance of USD 1.25 million.
The ED had arrested Masood in December 2012 and a charge sheet was recently filed against him.
"This is the first time that bank accounts in Switzerland have been attached by the ED under the PMLA. This important development is likely to have far-reaching impact as it will give a boost to international investigations being conducted by the ED under PMLA," sources said.
